| Stock (Symbol) | Stock Price | |
VMware (VMW) |
$86 |
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| Data is as of | Expected to Report | Sector |
August 9, 2011 |
Oct 19 |
Technology |
| Sharek’s Take | ||
 Today I will purchase the second cloud, VMware (VMW), for the Growth Portfolio and Aggressive Growth Portfolio. VMware is the leader in virtualization software, which allows one computer to work as multiple ones, doing several projects at once.
A long time ago, in a place before the market crashed (market crash 2011 version), WMW produced amazing results. The stock jumped for joy, then took a frowny face as panic overtook the community. But all storms pass, and this shall too. I am of the belief that cloud computing will be one of the fastest growing industries during the next three-to-five years, and think we should use this opportunity the market has given us to purchase shares of VMW. |
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| One-Year Chart | ||
 VMW’s one-year chart isn’t too bad. This is as of August 9th (the article is being written September 22nd). After VMW came down to the low 80s as shown here, the stock popped up to the mid-90s. I’ve waited for VMW to dip for a month-and-a-half. Now is the time to get some VMW. The stock is around $84. |
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| Earnings Table | ||
 Profit growth is great. The last four quarters VMware has had profits grow an average of 55% a quarter. Revenue growth was 37% last quarter. One negative of VMW is domestic growth has slowed, and the company has to look overseas for rapid growth.VMW has a good history of beating estimates.
When the company announced earnings last quarter the stock popped after the news. |
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| Fair Value | ||
 This stock isn’t undervalued at all. Upside for 2012 isn’t even that great. But this is one of the top-twenty growth stocks in my opinion and it is a must-own for me at this time. |
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| Ten-Year Chart | ||
 VMW was a hot stock in 2007, peaking at $125 in October. I remember the P/E always made VMW too high to buy. Then the company disappointed, and the stock came tumbling down. 2008 profits grew only 28% and 2009 profits took a slight dip. In 2010 VMW took off. During the past year the stock was considered too-high-to-buy. Now this seems to be a good buying opportunity. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
9 of 21 |
VMware is one of the top technology companies of this decade. Cloud computing is rapidly growing and this company will have the wind at its backs for three-to-five years. VMW is ranked 9th in the 20 stock Growth Portfolio Power Rankings. I’m not putting it in the Aggressive Growth Portfolio because I like the upside potential the current stocks in this portfolio possess. |
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Aggressive Growth Portfolio
N/A |
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